Question
What is the difference between markup and margin?
Markup is based on cost, while margin is based on selling price. The same pricing decision produces different markup and margin percentages, so they should not be treated as interchangeable.
Ecommerce
Use OmniCalc's markup calculator to estimate selling price, gross profit, and resulting margin from total cost and a target markup percentage.
Markup calculator
Enter total cost and a markup percentage to estimate the selling price, gross profit, and resulting margin for a product or offer.
Why this result matters
A practical ecommerce pricing tool that rounds out the early pricing cluster by converting target markup directly into selling price. Use the tool above to enter a few clear inputs and get a practical answer you can use right away.
This markup calculator helps sellers and operators turn cost into a target selling price using cost-plus pricing. It is useful because markup starts from cost, while margin starts from selling price, and confusing the two can easily lead to underpricing or unrealistic revenue goals.
Formula and method
The calculator multiplies total cost by the chosen markup percentage to estimate gross profit, adds that amount back to cost to estimate selling price, and then derives the resulting margin from the final price.
Example
If total cost is $35 and the target markup is 40%, the calculator estimates the required selling price, the gross profit amount, and the resulting margin percentage.
FAQ
Short answers to the questions people often ask before or after using the tool.
Question
Markup is based on cost, while margin is based on selling price. The same pricing decision produces different markup and margin percentages, so they should not be treated as interchangeable.
Question
Because margin uses selling price as the denominator and markup uses cost as the denominator. Once price is higher than cost, the same profit amount becomes a smaller share of price than it is of cost.
Question
It is most useful when pricing products from cost upward, especially in retail, ecommerce, wholesale, and cost-plus pricing workflows where you start from a required uplift on cost.
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